Economy-focused SONA fails to excite investors
President Marcos’ first State of the Nation (Sona) address failed to perk up the stock market on Tuesday as the benchmark index continued its sideways movement.
The Philippine Stock Exchange Index rose 0.22 percent, or 13.47 points, to 6,224 while the broader All Shares Index added 0.16 percent, or 5.22 points, to 3,364.99.
Daily volume closed at 728.03 million shares, valued at P3.75 billion, a day after Mr. Marcos outlined plans to boost the economy and expand his predecessor’s infrastructure program in a business-focused Sona.
Foreigners were set sellers in the amount of P431.6 million, stock exchange data showed.
Reacting to news flow
During a post-Sona briefing on Tuesday, Bangko Sentral ng Pilipinas Governor Felipe Medalla signaled the likelihood of another interest rate increase of up to 50 basis points in August while ruling out another off-cycle hike.
BDO was sold down for a second day as investors weighed loan exposure risks to Davao tycoon Dennis Uy’s Udenna Corp., which avoided a loan default by paying rental arrears on its Clark Global City project on Monday.
Article continues after this advertisementNicole Garcia, research analyst at AB Capital Securities said the decline was an overreaction. “Our view is that a large bank like BDO will have ensured that the collateral should be enough to cover the loan,” Garcia told the Inquirer.
Article continues after this advertisementConglomerate San Miguel Corp. was the top traded stock on Tuesday as it slipped 1.9 percent to P103 per share.
It was followed by BDO Unibank Inc., down 1.38 percent to P114; Ayala Land Inc., up 0.83 percent to P23.80; Bank of the Philippine Islands, up 0.12 percent to P86.50; and PLDT Inc., up 0.43 percent to P1,618 per share.
SM Prime Holdings Inc. was down 1.07 percent to P36.85; Semirara Mining and Power Corp., up 0.5 percent to P40.20; Emperador Inc., flat at P18.90; DMCI Holdings Inc., up 1.06 percent to P9.55; and International Container Terminal Services Inc., up 2.05 percent to P184.20 per share.
Overall, there were 104 advancers against 74 losers while 47 companies closed unchanged. INQ
